Silverlake Axis says independent review shows "no impropriety" in transactions

SILVERLAKE Axis on Wednesday said allegations in an anonymous shortselling report in August have been cleared in an independent review by Deloitte Singapore.

"The board is of the view that the executive report clearly bears out that there was no impropriety in connection with the transactions reviewed and that these were undertaken in due compliance with applicable statutory and listing requirements and were beneficial to the company," the software solutions provider said in a regulatory statement.

The anonymous report, titled "The Unbelievable Financial Alchemy of Silverlake Axis", suggested wrongdoing in relation to certain related party transactions entered into between the group and private companies controlled by the company's controlling shareholder, Goh Peng Ooi.

The shares took a hit when the anonymous report went out, with the report stating that "the authors of this report may have short positions in Silverlake Axis and stand to realise gains in the event that the price of the stock decreases", said Silverlake in August.

Silverlake Axis released the full 55-page report by Deloitte Singapore, and has set up a shareholders' meeting on Jan 25 to discuss the report.